Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 Index called to open +25pts at 6200, now making a more assertive test of the trendline of falling highs from last July. This will cheer the bulls who have been waiting patiently for a breakout. While we are also above the recent bugbear 200-day moving average at 6180 note that we still closed below the key level yesterday and overnight highs failed to better March highs of 6220. Watch levels: Bullish 6230, Bearish 6190.

The positive opening call comes after a largely positive session in Asia in the wake of a cautious Fed statement which, as expected, struck that fine balance between confidence in US economic recovery that warrants rate hikes whilst also highlighting global downside risks that allow it to rein in projections for future US interest rate hikes. The resulting weaker USD has helped sentiment, notably the commodity space, with Oil extending its gains.

Japan's Nikkei is the notable underperformer with USD weakness leading to continued Yen strength which is knocking exporter names, compounded by disappointing macro data showing export growth weakness failing to improve as much as hoped and imports remaining weak.

Australia’s ASX is benefiting from commodity sector strength from the Fed-inspired weaker USD and investors grateful for accommodative Fed policy for that bit longer. Chinese equities outperforming thanks to strength in technology stocks offsetting weakness in financials - a sector dented stateside by the prospect of lower rates for longer.

US markets delivered strong gains yesterday with the Federal Reserve scaling back its rate hike outlook for 2016. This came down to just two hikes - half of what Yellen & Co. called for in December. The Fed chair cited global risks to the US economy and inflation uncertainty, rather than the US economy itself which is performing well, as reasons for a) standing pat in March and b) just maybe standing pat for the rest of the year.

We still think (b) is the most likely outcome given what’s on the menu in the US in the latter half of 2016 (i.e. a presidential election the build-up to which is proving even more of a circus than usual), not to mention that the FOMC needs to keep market sentiment in check (i.e. keep us on our toes so we don’t get over excited!).

In focus today we have Eurozone Consumer Price Inflation (CPI) seen improving in February but still weak on an annual basis, vindicating Draghi's recent bazooka stimulus boost. The UK’s Bank of England rate decision is seen as a non-event although the minutes from the meeting could spice things up after peer central banks’ gloomy updates of late. In the afternoon, the Philly Fed may have stemmed some weakness, while the US Leading indicator should post a rebound.

Crude prices are off their highs after a strong overnight performance on a weaker USD (both helping boost equity markets). Brent has resistance around $40 while WTI is testing the $39.35 level in a tight range with support at $38.8. Note Saudi Arabia fanning the flames by saying it’s fully supportive of this 17 April meeting of oil producers in Doha, where an agreement will presumably be reached that will see global oil production, er, continue to increase.

Gold pushed back towards 11 Mar highs but has stalled at $1263. The yellow metal is currently consolidating following last night’s strong move as the USD weakened. With a broader USD sell off this morning, we could be in for another leg higher as European markets take advantage of favourable currency conditions.

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UK Company Headlines: (Source: Reuters/DJ Newswires)

• Electronic parts distributor Premier Farnell cuts final dividend
• Premier Farnell's FY adjusted pretax profit falls
• GKP says still owed $178 mln by Iraqi Kurdistan
• Gulf Keystone targets 2016 average production between 31,000 to 35,000 bopd
• South African authorities approve Sibanye's platinum acquisitions
• Allergy Therapeutics says finance director steps down
• Secure Trust Bank's FY statutory pretax profit rises 40 pct
• Arbuthnot Banking's full – year profit jumps as lending surges
• Imagination Technologies plans more cost cuts
• EnQuest's core profits slip 20 pct due to writedowns
• UK retailer Ted Baker profit up on new stores, demand
• Kier says on course for full – year targets
• Russia's Megafon says Q4 net profit up 89 pct y/y
• OneSavings Bank sees pretax profit rise 52 percent
• GlaxoSmithKline says CEO Witty to retire next year
• Crest Nicholson Says Sales to March 11 Strong, Trading Environment Positive
• Spire Healthcare Swings to Profit, Sees Continued Growth
• GlaxoSmithKline Vestri Study Results GSK Advair in Children 4-11
• GlaxoSmithKline CEO Witty to bow out in March 2017
• Rio Tinto says copper and coal chief to replace veteran Walsh as CEO in July
• Lufthansa eyes slight profit rise amid tough competition
• AstraZeneca acquires rights to Orexo's OX – CLI project
• Inpex, Shell postpone Indonesian gas project by at least 2 years – regulator
• Shell, Aramco plan to end their long-standing fuel partnership